When you apply for life insurance protection, they are going to look at dozens of different factors to determine how much they are going to pay for insurance protection. One obvious factor is your health or any pre-existing health conditions that you have. If you've been diagnosed with cancer, you might assume that you can't get life insurance coverage. In most cases, that isn't true. Regardless of your health or any complications, it's possible to get insurance protection. Not having life insurance is one of the worst mistakes that you could ever make for your loved ones.
Life insurance is one of the most important purchases that you'll ever make for your loved ones. Not having life insurance is one of the worst mistakes that you could make for your loved ones. If something tragic were to happen to you, and you didn't have coverage, your family would be stuck with a massive amount of debt and other final expenses.
When you're shopping for life insurance coverage, it's important that you understand all of the different factors to ensure that you're getting the best plan available. (more…)
When most people think about why someone may have been turned down for life insurance they typically think that health reasons are the reason why. While health is a major contributor to why people may get declined for life insurance, it isn’t the only reason. In this article, I’ll cover the top 5 reasons people are turned down for life insurance, and also provide tips for what you can do to get approved for a life insurance policy.
The most common reason that people get declined for life insurance coverage is because they have a specific health condition that gets them declined. For example someone who has cancer, or has had a heart attack recently might get declined for a traditional life insurance policy. There are however people who get declined for life insurance simply because they applied with the wrong insurance company. Not every life insurance company deals with high risk life insurance, and if you applied with companies like Allstate or State Farm and they declined you, it is possible you may get approved by another company. If you do have a health condition, I recommend that you work with a high risk life insurance agent that can help figure out what the best course of action is to get you approved for life insurance. If you can’t get approved for a traditional policy, there might be alternatives, such as a graded death benefit policy.
If you are involved in high risk activities you may get declined for life insurance. For example while most insurance companies will insure scuba divers, it all depends on the type of diving you do (open water vs cave diving), the amount of times you dive a year, where you dive and how deep you dive. If you travel internationally, or live abroad for a certain time of the year, some insurance companies will not want to insure you. Actively deployed military personnel may have a hard time getting approved for insurance, unless you are working with insurance companies that would still insure you, such as Prudential or Metlife. If you participate in high-risk activities, we can help you find an insurance company that will cover you. Contact us here.
To get approved for life insurance, there has to be financial justification. For example, someone earning $25,000 per year would most likely not qualify for a $1,000,000 life insurance policy since you can typically get coverage of anywhere between 10-30 times your annual income, depending on your age. If you don’t have an income, but your spouse does, you can typically get as much coverage as your spouse. If you don’t have income and can’t financially justify the need for life insurance, you might get declined for a life insurance policy.
If you have filed for a Chapter 7 bankruptcy, you will typically get declined for coverage until the proceedings have been discharged for at least 12 months. If however you are in the midst of a chapter 11,12,or 13 bankruptcy proceeding, you might be able to qualify for coverage if you are making regular debt payments.
It is possible that you may get declined for life insurance with a history of one DUI or more. If you have had more than 3 DUIs in the last 10 years, every insurance company would decline you. However if you have one or two DUIs over the last 10 years, some insurance companies will decline you, while others may not. If you have been declined due to a DUI it is possible you applied with the wrong insurance company. Contact Us if you have gotten a DUI and we can help you obtain coverage.
If you have a criminal history you may get declined for life insurance. Typically the difference between an approval and a decline is dependent on a couple of factors. First, how long has it been since you were convicted, and second what kind of conviction was it. If you have had multiple felonies, you will likely get declined. If however you have had one felony, or one or two misdemeanors, you might be able to get approved for coverage depending on how long ago your probation ended.
If you currently abuse drugs or alcohol, you will get declined for life insurance. If however you have been drug free for 3 years or more, or have stopped abusing alcohol for over two years, you should be able to get approved for a life insurance policy.
The first step you should take is find out why you were declined for coverage. The insurance company that declined you should send you a letter in the mail. While one company declined you, it doesn't mean that every other life insurance company will decline you as well - especially if you applied with companies that have strict underwriting guidelines, like State Farm, or Allstate.
I recommend speaking with a high risk life insurance agency to see if they think you can get approved with another life insurance company. You will want to work with an agency that has access to multiple life insurance companies, and understands high risk life insurance - such as ChooseTerm.com. If it is determined that you might be able to get approved with another company, go ahead and apply for coverage.
If its been determined that you can’t get approved for a life insurance policy, you still have options. You can look to apply for a Graded Life Insurance Policy or Guaranteed Issue life insurance policy.
A graded life insurance policy is designed for those that can’t get approved for a regular life insurance policy. Simplified Graded life insurance policies ask you a series of questions needed to qualify for coverage. Qualifying for coverage is likely for most people that have been declined for a regular policy, although there are certain times when you wouldn't get approved for a Graded policy - for example if you are currently getting treatment for cancer. In cases where you can’t get approved for a Simplified Issue policy, you can try for a Guaranteed Issue policy. Guaranteed issue policies also have an initial waiting period, but are “guaranteed issue” - meaning anyone can qualify for coverage.
Besides the initial waiting period that graded policies have, they typically also have a limit of how much coverage you can get. While one company may offer up to $25,000 of coverage, another may offer $100,000 - but you generally won’t find graded policies for over $100,000. If you need more coverage than that, you might need to get multiple policies.
Another alternative to a traditional life insurance policy is getting an accidental death benefit policy. As the name implies, accidental death benefit policies only covers death in cases where death results from injury or accident. However there are no qualifications needed to be able to get an accidental life insurance policy and if you have exhausted options for getting a traditional policy, or want more coverage than available with a graded death benefit policy, look to get an accidental life insurance policy. They are fairly inexpensive compared to a regular life insurance policy.
If you have a form of Cardiovascular Disease, inclduing Angina Pectoris, this blog post will discuss what you can expect to get in terms of pricing for term life insurance. If you are under 40 with Angina Pectoris, you will likely get declined for a traditional policy and will need to explore options for a graded death benefit policy. If you are over 40 it is possible to get approved for a regular term life insurance policy.
If the results of your angiogram are normal, you can expect “normal” or standard underwriting for your life insurance policy. That means that factors such as age, coverage amount, heigh/weight, and overall health will be considered in the pricing of your life insurance coverage. In that case simply compare life insurance rates with the quote form under this paragraph. Or read further about other forms of Angina and what you can expect in terms of underwriting.
If you have been diagnosed with Prinzmetal, you should be able to get approved for life insurance. Questions we will ask you to help you get the best pricing for life insurance with Prinzemetal are:
If you are seeing your cardiologist regularly and following treatment you are likely to see a Table rating of A-C. To get a customized quote fill out our contact us form and let us help you figure out the best approach for getting you approved for life insurance at the best rates.
Angioneurotic Edema, or Angiodema is similar to Prinzmetal from a life insurance underwriting standpoint. We would ask you similar questions about treatment,as well as results of recent EKGs and Echocardiograms as well as any other health conditions you might have. Expected table rating is A-C assuming that is the only health condition you have.
If you had an Angioplasty you might be able to qualify for a traditional life insurance policy, depending on several factors:
You will get the best ratings by having Stress EKGs within the past 12 months.
Depending on the severity of this condition, you should be able to get approved at Standard or Table A-C health rating for life insurance with Ankylosing Spondylitis.
With all the above cases there are a number of factors that affect the ability to get approved for life insurance with cardiovascular disease. Contact us to help you get approved for high risk life insurance at the best possible rates with the best life insurance company specifically based on your condition.